In 2016, Travis Perkins plc’s strategy will concentrate on improving our appeal to customers whilst expanding our network, along with exploiting the Group’s scale to improve efficiency and capitalising on the most rewarding investment opportunities throughout our portfolio.
The underpinning activities to improve our customer proposition and expand our network include offering better value, extending our range and availability, along with format renewal, modernising branches and creating national networks in a number of the Group’s businesses. Furthermore we recognise the need to modernise the branch network with plans underway to develop a new branch format, ‘TP 2018’, alongside further development of our multi-channel proposition.
We also plan to use the Group’s scale to improve efficiency and deliver a better customer proposition within our smaller businesses. We offer small businesses the opportunity to access properties they would otherwise find it difficult to occupy, or the option to co-locate with our larger businesses and benefit from greater foot traffic at our multi-fascia sites. We are also focused on using our buying scale to source products directly from manufacturers at lower cost and to consolidate product ranges, thus reducing costs further and offering better value to customers.
Finally, our revised approach to managing our portfolio of businesses has ensured a more robust planning approach, enabling us to allocate capital to the opportunities which are expected to deliver the most material value for shareholders. Capital expenditure is expected to increase in the medium term to take advantage of development opportunities in the market and will be tiered based upon the risk and return profiles of the various investment opportunities identified.
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